Suppose fuzzy button clothing company is evaluating a proposed capital budgeting project (project alpha) that will require an initial investment of $400,000. the project is expected to generate the following net cash flows: year 1 $325,000year 2 $500,000year 3 $500,000year 4 $500,000fuzzy button clothing company's weighted average cost of capital is 7%, and project alpha has the same risk as the firm's average project. based on the cash flows, what is project alpha's net present value (npv)? a. $1,455,054b. $1,356,065c. $1,130,054d. $730,054fuzzy button clothing company's decision to accept or reject project alpha is independent of its decisions on other projects. if the firm follows the npv method, it should accept or reject project alpha.

Harwood company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. the company's predetermined overhead rate of $2.50 per machine-hour was based on a cost formula that estimates $240,000 of total manufacturing overhead for an estimated activity level of 96,000 machine-hours. required: 1. assume that during the year the company works only 91,000 machine-hours and incurs the following costs in the manufacturing overhead and work in process accounts: compute the amount of overhead cost that would be applied to work in process for the year and make the entry in your t-accounts. 2a. compute the amount of underapplied or overapplied overhead for the year and show the balance in your manufacturing overhead t-account. 2b. prepare a journal entry to close the company's underapplied or overapplied overhead to cost of goods sold.

Which of the following differentiates cost accounting and financial accounting? a. the primary users of cost accounting are the investors, whereas the primary users of financial accounting are the managers. b. cost accounting measures only the financial information related to the costs of acquiring fixed assets in an organization, whereas financial accounting measures financial and nonfinancial information of a company's business transactions. c. cost accounting measures information related to the costs of acquiring or using resources in an organization, whereas financial accounting measures a financial position of a company to investors, banks, and external parties. d. cost accounting deals with product design, production, and marketing strategies, whereas financial accounting deals mainly with pricing of the products.

Why does an organization prepare a balance sheet? a. to reveal what the organization owns and owes at a point in time b. to reveal how well the company utilizes its cash c. to calculate retained earnings for a given accounting period d. to calculate gross profit for a given accounting period